Save Article

Zambia to More Than Triple Royalties for Copper Miners

Royalties to Rise to 20% for Open-Pit Copper Mines

By

Nicholas Bariyo

Oct. 11, 2014 3:20 a.m. ET

KAMPALA Uganda—Zambia plans to more than triple royalties on open-pit mines, the Finance Ministry said late Friday, in a move likely to sour the already fractious relationship between the government and mining companies.

Finance Minister Alexander Chikwanda said in a budget report that starting in January 2015 royalties will increase to 20% from 6% for open-pit copper mines and to 8% from 6% for underground mines, to achieve a more “equitable distribution of the mineral wealth between government and the mining companies.”...